Labuan Tax for Investment Holding Company

Labuan Investment Holding Company has a high degree of confidentiality with an operating flexibility. It is a structure favored by many entrepreneurs and business owners to hold various assets from personal to corporate. In short, Labuan Investment Holding Company is able to invest and hold assets, properties, equities and various other investments in any form on an international scale.

Benefits of a Labuan Investment Holding Company

Labuan Investment Holding company can be used for structuring purposes on numerous foreign companies and entities to consolidate all earnings. Having an Investment Holding company allows for ownership to be maintained throughout the structure, makes acquisitions simpler in the event of buy out or sale of the entire group, promotes asset and wealth protection and allows for risk reduction through diversification (holding of several businesses in various industries).

Labuan Tax for Investment Holding Company

Key Tax Profile of Labuan Investment Holding Company:

* 0% tax on all holding assets and properties with submission of Management account only
* No withholding tax on dividends, interest, management fee, royalty and technical fees
* No sales tax, GST, service tax for all international dealings
* 0% personal income tax on Directors’ fee for foreign individual or corporate director
* 50% tax rebate on personal income on foreign professional employment
* 65% tax rebate on personal income on local Malaysian professional employment 
* No stamp duty for instruments in connection with Labuan business activities, including transfer of shares
* Able to access to more than 70 Malaysia’s tax treaty partners
* No foreign exchange control using Labuan offshore bankers
* No tax on interest earned on deposits placement in Labuan offshore bankers.
 

Type of ComplianceReporting PartyDue Dates
Annual ReturnLabuan FSA1 month before anniversary of incorporation date
Annual Company FeeLabuan FSA On and before anniversary of incorporation date
Corporate Tax Inland RevenueBy 31st March, extendable to 31st May
Employer Return - Form EInland RevenueBy 31st March
Employee Return - Form BEInland RevenueBy 30th April
Audit Report/Management AccountLabuan FSA/CP TrustBy 30th Sept
Marketing Office Fee (if any)Labuan FSA-Fee RM7,500 By 15th Jan
Co-Located Office Fee (if any)Labuan FSA-RM10,000By 15th Jan

Feel free to enquire with us how to set up the right Investment Holding structure to meet your objectives. We “simplify the complexities” of your Labuan investment.

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